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Section 1: 8-K (8-K 09302018)

pcsb-8k_20180930.htm

 

 

 

 

 

UNITED STATES

SECURITIES AND EXCHANGE COMMISSION

WASHINGTON, D.C. 20549

 

FORM 8-K

 

CURRENT REPORT

Pursuant to Section 13 or 15(d) of the Securities Exchange Act of 1934

Date of Report (Date of earliest event reported): October 25, 2018

 

PCSB Financial Corporation

(Exact name of Registrant as Specified in Its Charter)

 

 

Maryland

001-38065

81-4710738

(State or Other Jurisdiction

of Incorporation)

(Commission File Number)

(IRS Employer

Identification No.)

 

 

 

2651 Strang Blvd., Suite 100,

Yorktown Heights, NY

 

10598

(Address of Principal Executive Offices)

 

(Zip Code)

Registrant’s Telephone Number, Including Area Code: (914) 248-7272

Not Applicable

(Former Name or Former Address, if Changed Since Last Report)

 

Check the appropriate box below if the Form 8-K filing is intended to simultaneously satisfy the filing obligation of the registrant under any of the following provisions (see General Instructions A.2. below):

Written communications pursuant to Rule 425 under the Securities Act (17 CFR 230.425)

Soliciting material pursuant to Rule 14a-12 under the Exchange Act (17 CFR 240.14a-12)

Pre-commencement communications pursuant to Rule 14d-2(b) under the Exchange Act (17 CFR 240.14d-2(b))

Pre-commencement communications pursuant to Rule 13e-4(c) under the Exchange Act (17 CFR 240.13e-4(c))

Indicate by check mark whether the registrant is an emerging growth company as defined in Rule 405 of the Securities Act of 1933 (§ 230.405 of this chapter) or Rule 12b-2 of the Securities Exchange Act of 1934 (§ 240.12b-2 of this chapter).

Emerging growth company 

If an emerging growth company, indicate by check mark if the registrant has elected not to use the extended transition period for complying with any new or revised financial accounting standards provided pursuant to Section 13(a) of the Exchange Act. 

 

 

 


 

Item 2.02 Results of Operations and Financial Condition.

On October 25, 2018, PCSB Financial Corporation, the holding company for PCSB Bank, issued an earnings release to report its financial results at and for the three months ended September 30, 2018. A copy of the earnings release is furnished as an exhibit hereto and is incorporated herein by reference.

Item 9.01 Financial Statements and Exhibits.

(a) Not applicable.

(b) Not applicable.

(c) Not applicable.

(d) Exhibits

 

Exhibit

Number

 

Description

 

 

 

99.1

 

Earnings Release dated October 25, 2018

1


 

SIGNATURES

Pursuant to the requirements of the Securities Exchange Act of 1934, the registrant has duly caused this report to be signed on its behalf by the undersigned thereunto duly authorized.

 

 

 

PCSB Financial Corporation

 

 

 

 

Date: October 25, 2018

 

By:

/s/ Scott D. Nogles

 

 

 

Scott D. Nogles

 

 

 

Executive Vice President and Chief Financial Officer

 

2

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Section 2: EX-99.1 (EX-99.1)

pcsb-ex991_6.htm

 

 

 

 

Exhibit 99.1

 

PCSB Financial Corporation Announces First Fiscal Quarter Results and Declares Quarterly Cash Dividend

 

Yorktown Heights, New York; October 25, 2018 – PCSB Financial Corporation (the “Company”) (NASDAQ: PCSB), parent of PCSB Bank (the "Bank"), today announced net income of $2.3 million, or $0.14 per basic and diluted share, for the three months ended September 30, 2018 compared to $2.7 million, or $0.16 per basic and diluted share, for the three months ended June 30, 2018 and $1.8 million, or $0.10 per basic and diluted share, for the three months ended September 30, 2017.

 

On a non-GAAP basis, which excludes certain nonrecurring items, the Company recorded net income of $2.3 million, or $0.14 per diluted share for the three months ended September 30, 2018 as compared to net income of $2.2 million, or $0.13 per diluted share for the three months ended June 30, 2018 and $1.6 million, or $0.10 per basic and diluted share, for the three months ended September 30, 2017. Reconciliations of GAAP to non-GAAP measures appear at the end of this release.

 

President’s Comments

Commenting on the Company’s results, Joseph D. Roberto, Chairman, President and Chief Executive Officer of PCSB Financial Corporation, said, “I am proud of the Company’s results for the first quarter of our fiscal year and the achievements we have made as we begin our second full year as a public company. Some of these achievements include year-over-year increases in interest income of 11.6%, net income of 32.6% and earnings per common share basic and diluted of 40.0%. The current quarter also showed a continued decline in problem assets as the ratio of non-performing assets to total assets decreased slightly to 0.43% from 0.44% for the June quarter and decreased by more than half from 0.88% a year ago. As we move forward in our second year as a public company, we will work to continue to build on these positive trends as we strive to create value for our shareholders.”

 

Income Statement Summary

Net interest income increased $588,000, or 6.0%, to $10.5 million for the three months ended September 30, 2018, compared to the same period in 2017 and decreased $968,000 or 8.5% from the previous quarter.  The increase in net interest income compared to the prior year is a result of a $55.4 million increase in average interest earning assets and a five basis point increase in the net interest margin. The increase in interest earning assets is primarily due to loan portfolio growth, partially offset by a decrease in investment securities. The net interest margin was 2.94% for the three months ended September 30, 2018, an increase from 2.89% for the three months ended September 30, 2017. The decrease in net interest income compared to the prior quarter is primarily due to the recording of $879,000 of interest income from the pay-off of two nonaccrual loans. Excluding this interest income, the net interest margin for the June quarter would have been 2.98%, compared to 2.94% in the current quarter. This four basis point decrease was primarily due to an eight basis point increase in the average rate paid on total average interest bearing liabilities.

 

The provision for loan losses was $58,000 for the three months ended September 30, 2018 compared to $25,000 in the prior quarter and $135,000 for the same period in 2017. Charge-offs, net of recoveries, were $3,000 for the three months ended September 30, 2018 compared to net recoveries of $255,000 for the three months ended June 30, 2018 and net charge-offs of $17,000 for the three months ended September 30, 2017.  Loans classified as substandard and doubtful decreased $2.4 million, or 15.2%, to $13.0 million at September 30, 2018 from $15.4 million at June 30, 2018 and decreased $11.6 million, or 46.9%, from $24.6 million at September 30, 2017. Non-performing loans as a percent of total loans receivable was 0.62% of total loans receivable as of September 30, 2018, a decrease from 0.66% as of June 30, 2018 and 1.35% as of September 30, 2017.

 

Noninterest income decreased $73,000 to $641,000 for the three months ended September 30, 2018 compared to the same period in 2017, primarily due to $173,000 of gains on the sale of securities recorded in the prior year period, partially offset by $71,000 of swap fee income recorded in the current quarter. Noninterest income increased $40,000 from the three months ended June 30, 2018, primarily due to increased swap and deposit-related fee income, partially offset by $63,000 of gains on the sale of securities realized in the prior quarter.

 

Noninterest expense increased $114,000 to $8.0 million for the three months ended September 30, 2018 compared to the same period in 2017 and decreased $256,000 compared to the three months ended June 30, 2018. The $114,000 increase from 2017 was caused primarily by a $280,000 increase in salaries and employee benefits, partially offset by decreases in advertising and occupancy expenses and professional fees. The increase in salaries and employee

 

1

 

 


 

 

 

 

benefits was primarily due to additional staffing, partially offset by lower retirement and medical benefits costs. The $256,000 decrease in noninterest expense from the three months ended June 30, 2018 was primarily due to a $370,000 loss recorded on a receivable in the prior quarter as well as decreases in professional fees, communications and data processing expense, and occupancy expense. These decreases were partially offset by a $251,000 increase in salaries and benefits expense driven primarily by additional staffing and increased medical benefits costs, and an $87,000 increase in advertising costs.                                                                                        

 

The effective income tax rate was 23.4% for the three months ended September 30, 2018, as compared to 31.4% for the three months ended September 30, 2017 and 28.7% for the three months ended June 30, 2018. In the three months ended September 30, 2018, the Company began to realize the full benefits of the reduction in the corporate income tax rate which became effective in January 2018.

 

Balance Sheet Summary

Total assets decreased $5.7 million to $1.47 billion at September 30, 2018 from $1.48 billion at June 30, 2018.  This decrease was primarily due to a decrease of $16.9 million, or 3.7%, in total investment securities, partially offset by increases of $6.2 million in cash and cash equivalents and $2.8 million in loans receivable. The $2.8 million increase in loans was the result of $33.2 million of originations, partially offset by $30.4 million of net amortization on the remaining portfolio, highlighted by the prepayment of two commercial mortgage loans totaling $10.2 million.

 

Total liabilities decreased $8.0 million to $1.18 billion at September 30, 2018 from $1.19 billion at June 30, 2018.  This decrease was primarily due to decreases of $4.3 million in total deposits and $3.8 million in mortgage escrow funds driven primarily by expected seasonal outflows related to school and property tax payments.

 

Total shareholders’ equity increased $2.3 million to $289.9 million at September 30, 2018 from $287.6 million at June 30, 2018.  This increase was primarily due to net income of $2.3 million and a $493,000 reduction in unearned ESOP shares for plan shares earned during the period, partially offset by $505,000 of cash dividends paid.  At September 30, 2018, the Company’s book value per share and tangible book value per share were $15.96 and $15.60, respectively, compared to $15.83 and $15.47, respectively, at June 30, 2018.  Reconciliations of book value per share (GAAP measure) to tangible book value per share (non-GAAP measure) appear at the end of this release. At September 30, 2018, the Bank was considered “well capitalized” under applicable regulatory guidelines.

 

Dividend

The Board of Directors declared a regular quarterly cash dividend of $0.03 per share. The dividend is payable on or about November 30, 2018 to stockholders of record on November 16, 2018.

 


 

2

 

 


 

 

 

 

About PCSB Financial Corporation and PCSB Bank

 

PCSB Financial Corporation is the bank holding company for PCSB Bank. PCSB Bank is a New York-chartered stock savings bank and has served the banking needs of its customers in the Lower Hudson Valley of New York State since 1871. It operates from its executive offices/headquarters and 15 branch offices located in Dutchess, Putnam, Rockland and Westchester Counties in New York.

 

This News Release contains a number of forward-looking statements within the meaning of Section 27A of the Securities Act of 1933, as amended, and Section 21E of the Securities Exchange Act of 1934, as amended. These statements may be identified by use of words such as "anticipate," "believe," "could," "estimate," "expect," "intend," "may," "outlook," "plan," "potential," "predict," "project," "should," "will," "would" and similar terms and phrases, including references to assumptions.

 

Forward-looking statements are based upon various assumptions and analyses made by the Company in light of management's experience and its perception of historical trends, current conditions and expected future developments, as well as other factors it believes are appropriate under the circumstances. These statements are not guarantees of future performance and are subject to risks, uncertainties and other factors (many of which are beyond the Company's control) that could cause actual results to differ materially from future results expressed or implied by such forward-looking statements. These factors include, without limitation, the following: the timing and occurrence or non-occurrence of events may be subject to circumstances beyond the Company’s control; there may be increases in competitive pressure among financial institutions or from non-financial institutions; changes in the interest rate environment may reduce interest margins; changes in deposit flows, loan demand or real estate values may adversely affect the Company's business; changes in accounting principles, policies or guidelines may cause the Company’s financial condition to be perceived differently; changes in corporate and/or individual income tax laws may adversely affect the Company's financial condition or results of operations; general economic conditions, either nationally or locally in some or all areas in which the Company conducts business, or conditions in the securities markets or the banking industry may be less favorable than the Company currently anticipates; legislation or regulatory changes may adversely affect the Company’s business; technological changes may be more difficult or expensive than the Company anticipates; success or consummation of new business initiatives may be more difficult or expensive than the Company anticipates; or litigation or other matters before regulatory agencies, whether currently existing or commencing in the future, may delay the occurrence or non-occurrence of events longer than the Company anticipates. The Company assumes no obligation to update any forward-looking statements except as may be required by applicable law or regulation.

 

Contact: Joseph D. Roberto

Chairman, President and Chief Executive Officer

(914) 248-7272

 


 

3

 

 


 

 

 

 

PCSB Financial Corporation and Subsidiaries

Consolidated Balance Sheets (unaudited)

(amounts in thousands, except share data)

 

 

 

 

September 30,

 

 

June 30,

 

 

 

2018

 

 

2018

 

 

 

 

 

 

 

 

 

 

ASSETS

 

 

 

 

 

 

 

 

Cash and due from banks

 

$

66,039

 

 

$

60,684

 

Federal funds sold

 

 

2,284

 

 

 

1,461

 

Cash and cash equivalents

 

 

68,323

 

 

 

62,145

 

Held to maturity debt securities, at amortized cost

  (fair value of $328,962 and $343,188, respectively)

 

 

340,208

 

 

 

353,183

 

Available for sale debt securities, at fair value

 

 

101,540

 

 

 

105,472

 

Total investment securities

 

 

441,748

 

 

 

458,655

 

Loans receivable, net of allowance for loan losses of $4,959 and $4,904, respectively

 

 

905,093

 

 

 

902,336

 

Accrued interest receivable

 

 

4,747

 

 

 

4,358

 

Federal Home Loan Bank stock

 

 

2,049

 

 

 

2,050

 

Premises and equipment, net

 

 

11,546

 

 

 

11,598

 

Deferred tax asset, net

 

 

2,495

 

 

 

2,622

 

Foreclosed real estate

 

 

754

 

 

 

460

 

Bank-owned life insurance

 

 

23,887

 

 

 

23,747

 

Goodwill

 

 

6,106

 

 

 

6,106

 

Other intangible assets

 

 

405

 

 

 

433

 

Other assets

 

 

7,342

 

 

 

5,677

 

Total assets

 

$

1,474,495

 

 

$

1,480,187

 

LIABILITIES AND SHAREHOLDERS' EQUITY

 

 

 

 

 

 

 

 

Interest bearing deposits

 

$

1,022,096

 

 

$

1,025,574

 

Non-interest bearing deposits

 

 

131,025

 

 

 

131,883

 

Total deposits

 

 

1,153,121

 

 

 

1,157,457

 

Mortgage escrow funds

 

 

4,981

 

 

 

8,803

 

Advances from Federal Home Loan Bank

 

 

18,810

 

 

 

18,841

 

Other liabilities

 

 

7,706

 

 

 

7,527

 

Total liabilities

 

 

1,184,618

 

 

 

1,192,628

 

Commitments and contingencies

 

 

-

 

 

 

-

 

Preferred stock ($0.01 par value, 10,000,000 shares authorized, no shares issued or outstanding as of September 30, 2018 and June 30, 2018, respectively)

 

 

-

 

 

 

-

 

Common stock ($0.01 par value, 200,000,000 shares authorized, 18,165,110 shares issued and outstanding as of September 30, 2018 and June 30, 2018, respectively)

 

 

182

 

 

 

182

 

Additional paid in capital

 

 

179,294

 

 

 

179,045

 

Retained earnings

 

 

130,189

 

 

 

128,365

 

Unearned compensation - ESOP

 

 

(12,839

)

 

 

(13,083

)

Accumulated other comprehensive loss, net of income taxes

 

 

(6,949

)

 

 

(6,950

)

Total shareholders' equity

 

 

289,877

 

 

 

287,559

 

Total liabilities and shareholders' equity

 

$

1,474,495

 

 

$

1,480,187

 

 

 

 

 

 

 


 

4

 

 


 

 

 

 

PCSB Financial Corporation and Subsidiaries

Consolidated Statements of Operations (unaudited)

(amounts in thousands, except share and per share data)

 

 

 

 

Three Months Ended

 

 

 

September 30,

 

 

 

2018

 

 

2017

 

Interest and dividend income

 

 

 

 

 

 

 

 

Loans receivable

 

$

9,898

 

 

$

8,818

 

Investment securities

 

 

2,366

 

 

 

2,245

 

Federal funds and other

 

 

345

 

 

 

234

 

Total interest and dividend income

 

 

12,609

 

 

 

11,297

 

Interest expense

 

 

 

 

 

 

 

 

Deposits

 

 

2,056

 

 

 

1,267

 

FHLB advances

 

 

89

 

 

 

154

 

Total interest expense

 

 

2,145

 

 

 

1,421

 

Net interest income

 

 

10,464

 

 

 

9,876

 

Provision for loan losses

 

 

58

 

 

 

135

 

Net interest income after provision for loan losses

 

 

10,406

 

 

 

9,741

 

Noninterest income

 

 

 

 

 

 

 

 

Fees and service charges

 

 

418

 

 

 

381

 

Bank-owned life insurance

 

 

140

 

 

 

149

 

Gains on sales of securities, net

 

 

-

 

 

 

173

 

Other

 

 

83

 

 

 

11

 

Total noninterest income

 

 

641

 

 

 

714

 

Noninterest expense

 

 

 

 

 

 

 

 

Salaries and employee benefits

 

 

5,140

 

 

 

4,860

 

Occupancy and equipment

 

 

1,241

 

 

 

1,282

 

Communications and data processing

 

 

472

 

 

 

491

 

Professional fees

 

 

369

 

 

 

413

 

Postage, printing, stationary and supplies

 

 

138

 

 

 

132

 

FDIC assessment

 

 

93

 

 

 

78

 

Advertising

 

 

87

 

 

 

165

 

Amortization of intangible assets

 

 

28

 

 

 

32

 

Other operating expenses

 

 

440

 

 

 

441

 

Total noninterest expense

 

 

8,008

 

 

 

7,894

 

Net income before income tax expense

 

 

3,039

 

 

 

2,561

 

Income tax expense

 

 

710

 

 

 

805

 

Net income

 

$

2,329

 

 

$

1,756

 

Earnings per common share:

 

 

 

 

 

 

 

 

Basic

 

$

0.14

 

 

$

0.10

 

Diluted

 

$

0.14

 

 

$

0.10

 

 

 

 

 

 

 

 

 

 

Weighted average common share - basic and diluted

 

 

16,869,100

 

 

 

16,756,447

 

 


 

5

 

 


 

 

 

 

PCSB Financial Corporation and Subsidiaries

Net Interest Margin Analysis (unaudited)

(dollar amounts in thousands)

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Three Months Ended September 30,

 

 

2018

 

 

2017

 

 

Average Balance

 

 

Interest / Dividends

 

 

Average Rate

 

 

Average Balance

 

 

Interest / Dividends

 

 

Average Rate

 

Assets:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Loans receivable

$

903,021

 

 

$

9,898

 

 

 

4.38

%

 

$

813,244

 

 

$

8,818

 

 

 

4.33

%

Investment securities

 

453,671

 

 

 

2,366

 

 

 

2.09

 

 

 

486,026

 

 

 

2,245

 

 

 

1.85

 

Other interest-earning assets

 

67,222

 

 

 

345

 

 

 

2.03

 

 

 

69,257

 

 

 

234

 

 

 

1.34

 

Total interest-earning assets

 

1,423,914

 

 

 

12,609

 

 

 

3.54

 

 

 

1,368,527

 

 

 

11,297

 

 

 

3.30

 

Non-interest-earning assets

 

49,894

 

 

 

 

 

 

 

 

 

 

 

58,241

 

 

 

 

 

 

 

 

 

Total assets

$

1,473,808

 

 

 

 

 

 

 

 

 

 

$

1,426,768

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Liabilities and equity:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

NOW accounts

$

119,404

 

 

 

53

 

 

 

0.18

 

 

$

114,770

 

 

 

49

 

 

 

0.17

 

Money market accounts

 

58,704

 

 

 

139

 

 

 

0.94

 

 

 

30,100

 

 

 

21

 

 

 

0.28

 

Savings accounts and escrow

 

462,542

 

 

 

289

 

 

 

0.25

 

 

 

518,315

 

 

 

325

 

 

 

0.25

 

Time deposits

 

392,336

 

 

 

1,575

 

 

 

1.59

 

 

 

298,010

 

 

 

872

 

 

 

1.16

 

Total interest-bearing deposits

 

1,032,986

 

 

 

2,056

 

 

 

0.79

 

 

 

961,195

 

 

 

1,267

 

 

 

0.52

 

Federal Home Loan Bank advances

 

18,821

 

 

 

89

 

 

 

1.89

 

 

 

41,398

 

 

 

154

 

 

 

1.48

 

Total interest-bearing liabilities

 

1,051,807

 

 

 

2,145

 

 

 

0.81

 

 

 

1,002,593

 

 

 

1,421

 

 

 

0.56

 

Non-interest-bearing deposits

 

125,381

 

 

 

 

 

 

 

 

 

 

 

134,368

 

 

 

 

 

 

 

 

 

Other non-interest-bearing liabilities

 

7,281

 

 

 

 

 

 

 

 

 

 

 

8,287

 

 

 

 

 

 

 

 

 

Total liabilities

 

1,184,469

 

 

 

 

 

 

 

 

 

 

 

1,145,248

 

 

 

 

 

 

 

 

 

Total shareholders' equity

 

289,339

 

 

 

 

 

 

 

 

 

 

 

281,520

 

 

 

 

 

 

 

 

 

Total liabilities and shareholders' equity

$

1,473,808

 

 

 

 

 

 

 

 

 

 

$

1,426,768

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Net interest income

 

 

 

 

$

10,464

 

 

 

 

 

 

 

 

 

 

$

9,876

 

 

 

 

 

Interest rate spread (1)

 

 

 

 

 

 

 

 

 

2.73

 

 

 

 

 

 

 

 

 

 

 

2.74

 

Net interest margin (2)

 

 

 

 

 

 

 

 

 

2.94

 

 

 

 

 

 

 

 

 

 

 

2.89

 

Average interest-earning assets to interest-bearing liabilities

 

135.38

%

 

 

 

 

 

 

 

 

 

 

136.50

%

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

(1) Net interest rate spread represents the difference between the average yield on average interest-earning assets and the average cost of average interest-bearing liabilities.

 

(2) Net interest margin represents annualized net interest income divided by average interest-earning assets.

 

 

 

 

 

 

 

 


 

6

 

 


 

 

 

 

PCSB Financial Corporation and Subsidiaries

Condensed Financial Information (unaudited)

(amounts in thousands, except per share data)

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

As of

 

 

September 30,   2018

 

June 30,

2018

 

March 31,

2018

 

December 31,

2017

 

September 30,

2017

 

Condensed Balance Sheets

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Cash and cash equivalents

$

68,323

 

$

62,145

 

$

36,505

 

$

77,106

 

$

34,733

 

Total investment securities

 

441,748

 

 

458,655

 

 

473,651

 

 

470,328

 

 

475,791

 

Loans receivable, net

 

905,093

 

 

902,336

 

 

886,718

 

 

838,120

 

 

839,963

 

Other assets

 

59,331

 

 

57,051

 

 

60,095

 

 

57,714

 

 

61,219

 

Total assets

$

1,474,495

 

$

1,480,187

 

$

1,456,969

 

$

1,443,268

 

$

1,411,706

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Total deposits and escrow

$

1,158,102

 

$

1,166,260

 

$

1,095,581

 

$

1,122,558

 

$

1,086,662

 

Advances from Federal Home Loan Bank

 

18,810

 

 

18,841

 

 

68,872

 

 

30,720

 

 

35,750

 

Other liabilities

 

7,706

 

 

7,527

 

 

7,856

 

 

7,579

 

 

7,209

 

Total liabilities

 

1,184,618

 

 

1,192,628

 

 

1,172,309

 

 

1,160,857

 

 

1,129,621

 

Total shareholders' equity

 

289,877

 

 

287,559

 

 

284,660

 

 

282,411

 

 

282,085

 

Total liabilities and shareholders' equity

$

1,474,495

 

$

1,480,187

 

$

1,456,969

 

$

1,443,268

 

$

1,411,706

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Quarter Ended

 

 

September 30,   2018

 

June 30,

2018

 

March 31,

2018

 

December 31,

2017

 

September 30,

2017

 

Condensed Income Statements

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Interest income

$

12,609

 

$

13,358

 

$

11,648

 

$

11,657

 

$

11,297

 

Interest expense

 

2,145

 

 

1,926

 

 

1,505

 

 

1,471

 

 

1,421

 

Net interest income

 

10,464

 

 

11,432

 

 

10,143

 

 

10,186

 

 

9,876

 

Provision for loan losses

 

58

 

 

25

 

 

54

 

 

200

 

 

135

 

Noninterest income

 

641

 

 

601

 

 

512

 

 

692

 

 

714

 

Noninterest expense

 

8,008

 

 

8,264

 

 

7,833

 

 

8,125

 

 

7,894

 

Income before income tax expense

 

3,039

 

 

3,744

 

 

2,768

 

 

2,553

 

 

2,561

 

Income tax expense

 

710

 

 

1,075

 

 

591

 

 

2,551

 

 

805

 

Net income

$

2,329

 

$

2,669

 

$

2,177

 

$

2

 

$

1,756

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Earnings per share:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Basic

$

0.14

 

$

0.16

 

$

0.13

 

$

0.00

 

$

0.10

 

Diluted

$

0.14

 

$

0.16

 

$

0.13

 

$

0.00

 

$

0.10

 

 

 

 

 


 

7

 

 


 

 

 

 

PCSB Financial Corporation and Subsidiaries

Selected Financial Data (unaudited)

 

 

 

Quarter Ended

 

 

September 30,   2018

 

June 30,

2018

 

March 31,

2018

 

December 31,

2017

 

September 30,

2017

 

Performance Ratios (1):

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Return on average assets

 

0.63

%

 

0.72

%

 

0.62

%

 

0.00

%

 

0.49

%

Return on average equity

 

3.22

%

 

3.73

%

 

3.06

%

 

0.00

%

 

2.44

%

Interest rate spread

 

2.73

%

 

3.04

%

 

2.82

%

 

2.85

%

 

2.74

%

Net interest margin

 

2.94

%

 

3.23

%

 

2.99

%

 

3.00

%

 

2.89

%

Adjusted Efficiency ratio (2)

 

72.11

%

 

71.17

%

 

73.51

%

 

74.69

%

 

75.78

%

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Noninterest income to average assets

 

0.17

%

 

0.16

%

 

0.14

%

 

0.20

%

 

0.20

%

Noninterest expense to average assets

 

2.17

%

 

2.24

%

 

2.21

%

 

2.30

%

 

2.20

%

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Average interest-earning assets to average interest-bearing liabilities

 

135.38

%

 

134.26

%

 

136.59

%

 

136.51

%

 

136.50

%

Average equity to average assets

 

19.63

%

 

19.41

%

 

20.08

%

 

20.00

%

 

20.10

%

Dividend payout ratio (5)

 

21.73

%

 

18.94

%

 

0.00

%

 

0.00

%

 

0.00

%

 

 

 

 


 

8

 

 


 

 

 

 

PCSB Financial Corporation and Subsidiaries

Selected Financial Data (unaudited) - Continued

(dollar amounts in thousands, except share and per share data)

 

 

As of and for the quarter ended

 

 

September 30,   2018

 

June 30,

2018

 

March 31,

2018

 

December 31,

2017

 

September 30,

2017

 

Loans to deposits

 

78.49

%

 

77.96

%

 

81.50

%

 

75.21

%

 

77.65

%

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Share Data:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Shares outstanding

 

18,165,110

 

 

18,165,110

 

 

18,165,110

 

 

18,165,110

 

 

18,165,110

 

Book value per common share

$

15.96

 

$

15.83

 

$

15.67

 

$

15.55

 

$

15.53

 

Tangible book value per common share (3)

$

15.60

 

$

15.47

 

$

15.31

 

$

15.18

 

$

15.16

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Asset Quality Ratios:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Non-performing assets

$

6,384

 

$

6,462

 

$

7,307

 

$

8,191

 

$

12,354

 

Allowance for loan losses as a percent of total loans receivable

 

0.54

%

 

0.54

%

 

0.52

%

 

0.53

%

 

0.62

%

Total valuation adjustment as a percent of total gross loans (6)

 

0.70

%

 

0.71

%

 

0.70

%

 

0.74

%

 

0.85

%

Allowance for loan losses as a percent of non-performing loans

 

88.08

%

 

81.71

%

 

64.54

%

 

54.58

%

 

48.53

%

Non-performing loans as a percent of total loans receivable, net

 

0.62

%

 

0.66

%

 

0.80

%

 

0.97

%

 

1.35

%

Non-performing assets as a percent of total assets

 

0.43

%

 

0.44

%

 

0.50

%

 

0.57

%

 

0.88

%

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Net charge-offs (recoveries)

$

3

 

$

(255

)

$

(99

)

$

997

 

$

17

 

Net charge-offs (recoveries) to average